Net leased Starbucks for sale in the Chicago MSA

1. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Starbucks
7101 South Stony Island Avenue
Chicago, IL 60649

2. NET LEASED INVESTMENT OFFERING
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1) Confidentiality & Disclaimer
2) Executive Summary
3) Property Overview
4) Pro Forma Analysis
5) Aerial
6) Site Plan
7) Maps
8) Tenant Profile
9) Demographic Comparison Report
10) Location Overview
11) Contact Information
TABLE OF CONTENTS
TABLE OF CONTENTS

3. NET LEASED INVESTMENT OFFERING
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The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person
or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide
summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the
subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The
Boulder Group has not made any investigation, and makes no warranty or representation. The information contained
in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group
has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any
investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy
or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the
information set forth herein.
CONFIDENTIALITY & DISCLAIMER
CONFIDENTITALITY & DISCLAIMER

4. NET LEASED INVESTMENT OFFERING
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The Boulder Group is pleased to exclusively market for sale a single tenant net leased Starbucks property located in a
densely populated part of Chicago, Illinois. The 1,696 square foot retail building was developed in 2004 at a heavily
trafficked signalized intersection. Starbucks is committed to this location as evidenced by their recent decision to extend
the lease for an additional ten years. Starbucks is an investment grade rated company with a Standard and Poor’s rating
of A-.
The Starbucks property is located at the signalized intersection of South Stony Island Avenue and East 71st Street
approximately ten miles south of downtown Chicago. South Stony Island Avenue is a primary north-south thoroughfare
with traffic counts in excess of 42,000 vehicles per day and is the only road with access to the Chicago Skyway Toll Road
(Interstate 90) in Illinois. The property is located approximately one-half mile north from Interstate 90 and two miles east
of Interstate 94, which experiences traffic counts in excess of 34,000 and 250,000 respectively. Additionally, there is a
Metra train stop located across the street from the Starbucks property. Metra is the commuter rail division that serves the
Chicago metropolitan area and over 80 million people per year. The Starbucks is located in a densely populated urban
infill part of the city with over 250,000 people living within three miles and over 515,000 people living within five miles.
The University of Chicago, one of the countries’ most prestigious universities and home to approximately 15,000 total
students, is located ten blocks to the north of the Starbucks.
Starbucks is committed to this location as evidenced by their decision to recently extend the lease for an additional ten
years. The closest Starbucks location to the subject property is over 2.5 miles away. Furthermore, the closest Starbucks
location with a drive thru is located over 4.5 miles away. There is a Bank of America located adjacent to the Starbucks
property. Other retailers in the immediate vicinity include Jewel-Osco, Family Dollar, PNC Bank, Fifth Third Bank, Walgreens,
Save-A-Lot, and AutoZone.
There are 10 years remaining on the recently extended Starbucks lease that expires July 31, 2024. The lease features
an 8.3% rental escalation in the primary term and 7.5% in each renewal option period. There are four 5-year renewal
options remaining. Starbucks is an investment grade rated company (S&P: A-) and is publicly traded (NASDAQ: SBUX) with
a market capitalization in excess of $53 billion.
INVESTMENT HIGHLIGHTS
• Starbucks is committed to this location as evidenced by their decision to recently extend the lease for ten years
• Located in an urban infill part of Chicago at a heavily trafficked signalized
intersection (50,000 VPD)
• Long term lease with 10 years remaining
• Investment grade tenant (S&P: A-)
• Rental escalation of 8.3% in the primary term and 7.5% in each renewal option
• Ten blocks south from the University of Chicago
• Only Starbucks within a 2.5 mile radius
• Located in a densely populated area with over 250,000 people living within a three
mile radius
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

5. NET LEASED INVESTMENT OFFERING
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PROPERTY OVERVIEW
PROPERTY OVERVIEW
Price: $1,563,600
Current Cap Rate: 6.50%
Net Operating Income: $101,634
Rental Escalations 8.3% in Year 6, 7.5% in Option Periods
Renewal Options: Four 5-Year
Lease Commencement Date: July 16, 2004
Lease Expiration Date: July 31, 2024*
Tenant: Starbucks
Credit: A- (S&P)
Year Built: 2004
Lease Type: NN (Roof, Structure, Parking Lot & HVAC)
Building Size: 1,696 SF
Land Size: 14,080 SF
*Tenant has the one time opportunity to terminate the lease on July 31, 2020

6. NET LEASED INVESTMENT OFFERING
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PRO FORMA ANALYSIS
PROFORMA ANALYSIS
2014
Rent
Base Rent $101,760
Total Rent $101,760
Recoveries
CAM (Exclusing snow removal)2
$3,782
Snow Removal $3,151
Admin Fee3
$315
Tax $31,740
Insurance $1,146
Total Recoveries $40,133
Total Income $141,893
Expenses1
CAM (Excluding snow removal) ($4,223)
Snow Removal ($3,151)
Taxes ($31,740)
Insurance ($1,146)
Total Expenses ($40,259)
Net Operating Income $101,634
1) For the purpose of this analysis, a 3% growth rate was applied to the 2013 expenses
2) There is a 7% cap on CAM (excluding snow removal); in 2013, the actual CAM cap was $3,534
3) Landlord can collect a 10% administrative fee on CAM and snow removal; as the CAM cap has
been achieved for CAM, no administrative fee is collected

7. NET LEASED INVESTMENT OFFERING
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AERIAL
AERIAL
N
S.STONYISLAND
OAK WOODS CEMETERY
METRA TRACKS
42,000VPD
90

8. NET LEASED INVESTMENT OFFERING
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SITE PLAN
SITE PLAN
S STONY ISLAND AVENUE
DRIVE-THRU
E71STSTREET
METRATRACKS
N

9. NET LEASED INVESTMENT OFFERING
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MAPS
MAPS
Lake Michigan

10. NET LEASED INVESTMENT OFFERING
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MAPS
MAPS
Lake Michigan

11. NET LEASED INVESTMENT OFFERING
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Starbucks (NASDAQ: SBUX) is an American global coffee company and coffeehouse chain based in Seattle,
Washington. Starbucks is the largest coffeehouse company in the world with approximately 21,000 locations
worldwide in 64 countries. There are over 13,000 locations in the United States of America.
Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas,
pastries, and snacks. Most stores also sell pre-packaged food items, hot and cold sandwiches, and items such
as mugs and tumblers. Since 1987, Starbucks has opened on average two new stores every day.
Starbucks is publicly traded on the NASDAQ, SBUX, and has a market capitalization in excess of $53 billion.
Starbucks is investment grade rated with a Standard and Poor’s rating of A-.
Website: www.starbucks.com
Credit Rating: S&P: A-
Stock Symbol: NASDAQ: SBUX
Market Capitalization: $53 billion
Number of Locations: 21,000
Headquarters: Seattle, Washington
Founded: 1971
TENANT PROFILE
TENANT PROFILE

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Population 1-mi 3-mi 5-mi
Total Population 38,361 252,568 515,306
Total Households 16,918 106,437 199,818
Income
Average Household Income $40,456 $45,811 $44,665
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT

13. NET LEASED INVESTMENT OFFERING
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Chicago is the most populous city in the Midwestern United States and the third most populous
city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County,
the second largest county in the United States. The Chicago MSA is the third most populated
metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300
square miles and six counties. The Chicago metropolitan area is home to the corporate
headquarters of 57 Fortune 1000 companies, including Boeing, McDonald’s, Motorola, Discover
Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure
and O’Hare International Airport is the second busiest airport in the world in terms of traffic movement.
The metro is also a major financial center in North America, and is home to the largest futures exchange in the
United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks
the competitiveness of financial centers based on people, business environment, market access, infrastructure
and general competitiveness.
www.cityofchicago.org
LOCATION OVERVIEW
LOCATION OVERVIEW

14. NET LEASED INVESTMENT OFFERING
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CONTACT INFORMATION
CONTACT INFORMATION
666 Dundee Road, Suite 1801
Northbrook, IL 60062
Randy Blankstein
President
847.562.0003
rblank@bouldergroup.com
Jimmy Goodman
Partner
847.562.8500
jimmy@bouldergroup.com